2017 4th International Conference on Electrical and Electronics Engineering
An Overview of Demand Response Applications under Smart Grid Concept
Onur Elma, Ugur
YlldlZ Technical University, Department of Electrical Engineering
34220, Esenler, Istanbul, Turkey
e-mail: onurelma@yildiz.edu.tr.selam@yildiz.edu.tr
Ahstract-The idea of controlling the demand side electrical
consumption has led the dissemination of demand response
applications under smart grid concept. Especially residential
demand response applications have been widely adopted and
many studies have been conducted in the world. In this study
general information about demand response is given and
demand response research in the world and in Turkey is
summarized. A simulation study is completed to show the
effect of demand response application in a residential house
using load shifting. In the simulation study, electrical
appliances, which are intended to be used at high priced hours,
are shifted forward in time to control the peak demand of the
house. Considering new smart appliances and internet of
things (lOT) applications, the demand response will offer new
perspectives on electrical energy generation/consumption and
on the operation of power systems.
Keywords-Demand response; smart grid; residential demand
control
I. INTRODUCTION
Economical, technological and social advancements of
countries increases their electricity needs [1]. Increasing
energy requirement with developing technology brings up
some essential issues such as searching new electrical
sources and management of existing electrical sources
efficiently. In this context, an optimized energy management
solution that promotes environmental friendly use of energy
is crucial. This aim can be achieved by transforming the
traditional power grid into Smart Grid (SG) where
information technology is integrated to traditional grid
structure so that every moment of the power generation and
power demand can be monitored and controlled [2].
With developing technology, the electricity usage has
increased considerably and peak demand has also increased.
Thus, satisfying supply-demand equality under SG concept
requires taking both generation side and demand side into
account at the same time. For this purpose, Demand
Response (DR) has emerged as a solution to demand side
control in SG[3]. Many studies have been carried out related
to DR in literature [4]-[11]. In [4], a load model is developed
to analyze the effect of DR application on the wholesale
electricity market. In another study, the price-based
optimization technic to control DR sources is investigated to
maximize aggregator profit [5]. In [6], DR effect on market
clearing price is investigated. In [7], it is shown that DR
application could help to regulate frequency in a micro grid
structure. In [8], a different framework using DR capabilities
is suggested for customers with high electricity consumption.
978-1-5090-6789-3//7/$31.00 ©20 17 IEEE
Authorized licensed use limited to: SHANDONG UNIVERSITY. Downloaded on June 16,2021 at 03:34:47 UTC from IEEE Xplore. Restrictions apply.
Sava~ Selamogullari
In [9], a home energy management algorithm is
implemented using DR technique to minimize the cost. In
addition, customer comfort is taken as parameter in the
proposed home energy management algorithm [10]. In [11],
a load shaping strategy is implemented based on dynamic
pricing and energy storage.
In this study general information about demand response
is given and demand response research in the world and in
Turkey is summarized. A simulation study is completed to
show the effect of demand response application in a
residential house using load shifting. The rest of this paper is
organized as follows. In section 2, general information
related to DR applications in the world is given. In section 3,
specific information related to DR applications in Turkey is
summarized. In section 4, the effect of DR application effect
on electricity consumption smart home envirolilllent is
investigated as a case study. Finally, conclusions are given.
11. DEMAND RESPONSE
Although there are many DR definitions in literature
based on considered points, Federal Energy Regulatory
Commission (FERC) defines the DR as: "Changes in electric
usage by end-use customers from their normal consumption
patterns in response to changes in the price of electricity
over time, or to incentive payments designed to induce lower
electricity use at times of high wholesale market prices or
when system reliability is jeopardized" [12].
The DR offers many benefits such as price reduction,
reduced outages, customer participation, diversified
resources, reduced market power, reduced price volatility,
and savings in billing [14]. One of the benefits of DR is its
contribution to the grid regulation as explained in Fig. 1. In
this projection, commercial and home electric consumptions
are monitored and controlled through a smart meter (SM).
This control is made by central unit called as aggregator.
This control implemented price-based or incentive-based
depending on load size and locations. Aggregators make a
decision based on the information from the service provider.
The service provider sends a necessary control signal to
aggregator after checking the amount of generation and
consumption for market balance. As a result of this control in
coordination with the customer, the service provider can
achieve the supply-demand balance. Before DR applications,
supply-demand balance is stabilized by automatic or manual
load shedding. In automatic load shedding, predetermined
loads are cut out for grid security when line frequency or
voltage value lower than their threshold values.
104
 •
Smart meter which is provide two-way
communication
• Communication infrastructure which gets
information to customer such as Real-Time Pricing,
possible lack of generation, and emergencies.
• Energy information tools in order to monitor
performance of customer: such as load shedding
performance and load shifting performance.
• Home energy management tools.
• Tools for load control such as smart plugs.
The mentioned technologies allow monitoring customer
consumption or generation information and also allow
changing consumption habit.
HOME-l HOME-2 ----------- HOME-N

Figure I. A sample OR application scheme.

A. Overview of Demand Response Applications in the
world
Today, there are various DR applications with new In the last decade, the demand response applications are
technologic opportunities and these applications are mainly on the rise with the transition to SG concept in the world. In
divided into two categories: incentive-based DR applications Figure 3, countries, which have done the most academic
and price-based DR applications [13]. Incentive-based DR work for the last 10 years, is given [16]. As seen, the leading
applications include direct load control, country is USA followed by China.
interruptible/curtailable service, demand bidding/buyback, u;oo
ancillary DR, capacity market and emergency DR 1400
applications. Customers get participation payments such as 1200

bill credit or discount rate in direct load control and

interruptible/curtailable service programs. Other incentive-
i..
~
1000

800

based DR programs are classified as market-based DR 8

ODD
000

programs in some papers and participating customer receives 400

a payment depending on their participant performance [14].

200
D D D D D D
Price-based DR programs include Time-of-Use, real-time
pricing and critical peak pricing. These programs offer
dynamic price tariff rather than flat rate price tariff for
Figure 3. Smart grid research in the world for the last 10 years.
customers and demand fluctuation reduction is aimed by
these programs.
A survey made in England declares that every 5 cents
Real-Time Pricing energy reduction at peak times leads to $2,7billion reduction
on the total cost of generation, transmission and distribution.
Price-Based Time-of-Use Variable pricing based on the use of energy at different time
intervals has been started at the end of 1970' s and at the
Critical Peak Pricing beginning of 1980's by US Energy Ministry [17]. By the end
of 1990's, dynamic pricing rates have been used to
Direct Load Control investigate the effect of DR applications on the reduction of
peak demand [17]. Today, the England Independent Operator
Interruptible/Curtailable (ISO-NE) provides three types of demand response
Service
applications to its consumers: real time demand, real time
Demand Bidding! pricing and day-ahead demand response [18]. Some
Buyback examples of demand response applications in USA are
PG&E SmartAC program that adjusts demand by load
Emergency DR
control system [19], the smart thermostat program applied by
North California Edison [20] and San Diego Gas and Electric
Capacity Market Company [21], PowerCentsDC program [22] and the pilot
program of voluntary multi-tariff energy usage applied by
Ancillary Serv ice Sacramento municipality [23]. In China, intense studies are
conducted on demand response [24]. In Japan, a 30%
Figure 2. OR programs.
reduction of energy consumption is identified on a pilot
demand response project that is applied in 69 apartments
As mentioned earlier, the technology is one of the most
[25]. Besides, 40% of the smart grid projects made in Europe
important thing to implement DR programs as depicted in
and US are focused on demand response and management
Fig. 2. Used technologies in DR programs are briefly given
topics [25]. According to the 2014 Europe smart grid project
below [15]:

105

Authorized licensed use limited to: SHANDONG UNIVERSITY. Downloaded on June 16,2021 at 03:34:47 UTC from IEEE Xplore. Restrictions apply.
evaluation, the total budget of demand response related Development of a domestic smart istanbul Asia 33
projects is 400 million Euro [26] and the list of technical meter prototype for smart grids SideEDAS months
analyses of DR applications in European countries is given Investigation of the effect of
in [27]. customer side demand response on
distribution companies and 12
Ba~kent EDAS
B. Overview of Demand Response Applications in Turkey determination of the position of months
distribution companies under new
As a developing country, Turkey is at the top of the mm'ket concept
countries with the highest energy demand due to economic Development of a integrated smart
growth and increasing population. In Turkey, energy policies grid platfonn for managing critical Toroslar EDAS 36
are directed by the Ministry of Energy and Natural infrastructure in smart cities and months
pilot application (KRiT A)
Resources and Republic of Turkey Energy Market
Standm'dizing the cyber security in Ye~ihrmak
Regulatory (EPDK). Under the leadership of these smart grid. EDAS
9 months
govermnent departments, necessary studies are being
completed to adapt to smart grids and to new energy market Ill. CASE STUDY: THE EFFECT OF DR ON THE RESIDENTIAL
infrastructures under smart grid concept. Initially, CONSUMPTION
privatization of distribution companies, incentives for
dissemination of the use of renewable energy resources and The control of residential demand in the demand
licensing of unlicensed generation are completed for this response applications offers an important potential for peak
purpose. In addition, there are various incentives for the use load reduction when required. A basic demand response
of electric vehicles and the dissemination of the necessary application is to shift one or more of the active electrical
infrastructure for electric vehicles. All these developments appliances to off peak hours through the use of smart plugs.
bring with it the need to renew in the existing electricity grid. In this section a simulation study is completed to assess the
As a result, Energy Efficiency Strategy Document 2012- effect of DR on the residential electrical consumption. A
2023 has been put into effect in order to make the electricity typical one-day residential load profile is obtained for a
network more efficient and to establish the smart grid working family as shown in Figure 4. As seen, the peak load
occurs between 19:00-24:00.
infrastructure in Turkey [28]. Currently, there are 21 research
and development projects about smart grid and demand
response applications in Turkey. These projects are mainly
funded by EPDK and managed by Turkish electricity
distribution companies (EDAS). These projects are given in
Table I [29], [30].
TABLE I. SMART GRIDS AND DEMAND RESPONSE PROJECTS IN TURKEY

Project name Utilities Time o'-"'.......

""""."...""-"''''--'''-''''O''''O'o....o.O~..o..<L~>.d....o~.<L.o."-'''''''--------'_---'-_--'

00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 23:59
Akdeniz EDAS. Time [hour]
Anadolu Yakasl
EDAS. Aydem Figure 4. A typical one day residential load profile
EDAS. Ba~kent
Road-map for Turkish Smmt
EDAS. Bogazi9i
16
In Turkey, customers can choose a 3-level tariff and in
Grids-2020
EDAS.
months this tariff the hours between 17:00-22:00 has the highest
<;:amhbel price for electricity. Thus, the shifting of electrical
EDAS. Gediz
EDAS. Toroslar
appliances out of this time interval will offer considerable
EDAS ve advantage to customer. AC, washing machine, dish machine,
Uludag EDAS heater and vacuum cleaner are defined as shiftable loads and
Multiple input smart distribution
Akdeniz EDAS
29 when the residential load consumption is over the value of 5
automation system months kW these loads are shifted to off peak hours. The resulting
Distributed generation control to
load profile is given in Figure 5 [31].
solve load flow and voltage
18
regulation issues due to two way ArasEDAS
months
load flow with distributed
generation.
Development of smmt monitoring
and evaluation system for
simultaneous monitoring of UludagEDAS 21months
distribution transfonners and state
analysis
A system design for integrated
secure two way energy transfer for O ~~~~~~~~~~~~~~~~~--L-~~

Bogazi9i EDAS 36 00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 23:59
electrical distribution and
UludagEDAS months Time [hour]
transmission systems and
manufacturing a prototype Figure 5. Compm-ison of the nonnalload profile and load profile with
shifting

106

Authorized licensed use limited to: SHANDONG UNIVERSITY. Downloaded on June 16,2021 at 03:34:47 UTC from IEEE Xplore. Restrictions apply.
 As seen, the peak loading hours are shifted to off peak
hours where the price of electricity is lower. Also, a
reduction up to 65% in peak load is obtained.
IV. CONCLUSIONS
In this study, an overview of DR applications in the
world and in Turkey is given. A simulation study is
completed to assess the potential of commonly used
residential DR applications on reducing peak demand at the
grid when the DR is applied in a large scale under smart grid
concept. Considering new smart appliances and Internet of
Things (lOT) applications, DR will offer new perspectives
on electrical energy generation and consumption and on the
operation of power systems. It should also be noted that DR
can also be applied to commercial and industrial customer
levels. However, electrical consumption of these customers
needs to be measured and analyzed first. For example,
heating, ventilating and air conditioning loads can effectively
be managed to reduce the demand at peak hours for these
customers. Since temperature change has long time constant,
shifting these loads will only cause minimal discomfort.
However, in DR applications small time step such as 15-
minute should be used for maintaining a comfortable
environment. As industrial and commercial customers are
high power loads, DR applications at these levels will
possibly offer more benefits to the grid side for peak load
management and economic operation. Investigating ofDR at
commercial and industrial customer levels is planned as the
future work of authors. Although DR applications in Turkey
are only pilot projects, they will be common practice in the
near future as Turkey moves towards to smarter grid.
REFERENCES
[I] L. Ozturk, "A literature survey on energy-growth", Energy Policy, c.
38,saYll,ss.340-349,2010.
[2] K. Vu, M. Begovic, andve D. Novosel, "Grids get smart protection
and control", IEEE Comput. Appl. power, c. 10, say! 4, ss. 40-44,
1997.
[3] F. Rahimi and A. Ipakchi, "Demand response as a market resource
under the smart grid paradigm", IEEE Trans. Smart Grid, c. I, say! I,
ss. 82-88,2010.
[4] M. Parvania and M. Fotuhi-Firuzabad, "Demand response scheduling
by stochastic SCUC", IEEE Trans. Smart Grid, c. I, say! I, ss. 89-98,
2010.
[5] M. Parvania, M. Fotuhi-Firuzabad, and M. Shahidehpour, "Optimal
Demand Response Aggregation in Wholesale Electricity Markets",
IEEE Trans. Smart Grid, c. 4, say! 4, ss. 1957-1965, Ara. 2013.
[6] Z. Zhao, L.Wu, and G. Song, "Convergence of volatile power
markets with price-based demand response", IEEE Trans. Power Syst.,
c.29,say! 5,ss.2107-2118,2014.
[7] S. A. Pounnousavi and M. H. Nehrir, "Real-time central demand
response for primary frequency regulation in microgrids", IEEE
Trans. Smart Grid, c. 3, say! 4, ss. 1988-1996,2012.
[8] S. J. Kazempour, A. J. Conejo, and C. Ruiz, "Strategic bidding for a
large consumer", IEEE Trans. Power Syst., C. 30, saYl2, ss. 848-856,
2015.
107
Authorized licensed use limited to: SHANDONG UNIVERSITY. Downloaded on June 16,2021 at 03:34:47 UTC from IEEE Xplore. Restrictions apply.
[9] H. T. Nguyen, D. T. Nguyen, and L. B. Le, "Energy management for
households with solar assisted thennal load considering renewable
en- ergy and price uncertainty", IEEE Trans. Smart Grid, c. 6, say! I,
ss. 301-314,2015.
[10] A. A. Moghaddam, H. Monsef: and A. R. Kian, "Optimal smart home
energy management considering energy saving and a comf01table
lifestyle", IEEE Trans. Smart Grid, c. 6, say! 2, ss. 324-332, 2015.
[11] T. Jiang, Y. Cao, L. Vu, and Z.Wang, "Load shaping strategy based
on energy storage and dynamic pricing in smart grid", IEEE Trans.
Smart Grid, c. 5, say! 6, ss. 2868-2876,2014.
[12] M. Balijepalli and K. Pradhan, "Review of Demand Response under
Smart Grid Paradigm", i9inde IEEE PES Innovative Smart Grid
Technologies, 2011, ss. 236 - 243.
[13] A. R. Khan, A. Mahmood, A. Safdar, Z. A. Khan, and N. A. Khan,
"Load forecasting, dynamic pricing and DSM in smart grid: A
review", Renew. Sustain. Energy Rev., c. 54, ss. 1311-1322,2016.
[14] M. H. Albadi and E. F. EI-Saadany, "A summary of demand response
in electricity markets", Electr. Power Syst. Res., c. 78, sayl 11, ss.
1989-1996, Kas. 2008.
[15] W. Clark and P. E. Gellings, The Smart Grid: Enabling Energy
Efficiency and Demand Response. U.S.: CRC Press, 2009.
[16] "Demand Response", 2016. [online]. Available at:
https:llwww.scopus.com!.
[17] F. Shariatzadeh, P. Mandal, and A. K. Srivastava, "Demand response
for sustainable energy systems: A review, application and
implementation strategy", Renew. Sustain. Energy Rev., c. 45, ss.
343-350,2015.
[18] P. Cappers, C. Goldman, and D. Kathan, "LBNL - Demand Response
in U.S. Electricity Markets: Empirical Evidence", Energy, 2009.
[19] "PG&E. Load impact evaluation for PG&E Company's SmartAC
Program. In: Final report; 2010.", 2011.
[20] "Southern California Edison. Program impact evaluation of2004 SCE
energy smart thermostat program final report.", 2005.
[21] "KEMA. 2005 Smart Thermostat Program Impact Evaluation.", 2006.
[22] "PowerCentsDC Program Final Report", 2010.
[23] S. Lutzenhiser, 1. Peters, M. Moezzi, and 1. Woods, "Beyond the
price effect in time-of- use programs: results from a municipal utility
pilot", i9inde Intema- tional energy program evaluation conference,
2009.
[24] 1. Dong, G. Xue, and R. Li, "Demand response in China: Regulations,
pilot projects and recommendations - A review", Renew. Sustain.
Energy Rev., c. 59, ss. 13-27,2016.
[25] E. Niesten and F. Alkemade, "How is value created and captured in
smmt grids? A review of the literature and an analysis of pilot
projects", Renew. Sustain. Energy Rev., c. 53, ss. 629-638,2016.
[26] A. Catalin, F. Covrig, M. Ardelean, J. Vasiljevska, A. Mengolini, G.
Fulli, E. Amoiralis, M. S. Jimenez, and C. Filiou, Smart Grid Projects
Outlook 2014.2014.
[27] SEDC, "Mapping Demand Response in Europe Today", SEDC. Smart
Energy Demand Coalit., say! April, s. 92,2014.
[28] "Energy Efficiency Strategy Document", 2016. [online]. Available at:
http://www.resmigazete.gov.tr/eskiler/2012/02/20120225-7.htm.
[29] "EPDK", 2016. [online]. Available at:
http://www.epdk.org.trltr/Dokumanlar/tdb/ ARG E.
[30] "ELDER". [online]. Available at: http://www.elder.org.tr/.
[31] Elma, 0., Selamogullan, U.S., Uzunoglu, M. and Ugur, E., "Carbon
emission savings with a renewable energy supplied smart home
operation", Renewable Energy Research and Applications (lCRERA),
2013 International Conference on, vol., no., pp.1129,1132, 20-23 Oct.
2013